For the first time ever, Brazil is expected to export more soybeans than it crushes domestically this year
The Brazilian soybean crush is at its lowest level since 2009 despite a record harvest of 81.6 million tonnes that finished in May.
About 19.3 million tonnes of soybeans were crushed from the start of the industrial year in February through the end of July, down seven per cent from the 20.8 million tonnes crushed over the same period last year, according to the latest data from Brazil’s vegetable oils industry association, Abiove.
“You would expect the industry to be doing well in a year when a record harvest had just finished,” said Abiove general secretary Fabio Trigueirinho.
Read Also
Low yield allowance adjusted to support farmers in Alberta
Alberta farmers can move more quickly to salvage poor crops for feed, after the federal and provincial governments announced increases to AFSC’s low yield allowances for the 2025 crop year.
Drought in 2012 that ravaged soybean crops in South America and the U.S. is partly to blame. When the droughts pushed stocks to record lows and boosted prices, crushers struggled to pass on high prices for feed and soy oil to customers. That made exporting more attractive, and this year, for the first time ever, Brazil is expected to export more soybeans than it crushes domestically.
The trend has also touched the U.S., where soy processors posted their lowest crush numbers for August since 2009, constrained by lingering supply tightness.
Argentine tax policy has also hurt the industry.
“The tax situation is in chaos right now and that is part of the problem,” said Trigueirinho.
Meanwhile, Brazilian farmers in top soy state Mato Grosso are waiting for rain to start planting what could be a record crop.
The USDA is predicting 88 million tonnes of soybeans from Brazil in the 2013/14 season, surpassing last seasons’ record 81.5 million tonnes.
